You are a business owner working hard every day concentrating on growing your business, worrying about payroll, advertising, sales, etc. Meanwhile, there’s a whole class of people looking to take advantage of you.
WHO is this kind of person and WHY? some are professionals like, shoplifters “slip & fall” actors, cyber criminals with stolen credit cards, unethical suppliers or simply your employee who disagrees with you over how much they think they should be getting paid. Why will someone target you? The answer is simple, money.
The fact is most business owner will experience business loss due to a single person or group of individuals who will target them simply because you represent a pay day for them. Don’t worry it’s not all that bad, you can take many steps to prevent or minimize your losses. Here is a sample.
3 quick steps business owners should take to minimize loss, risk and a frivolous law suit.
Separate yourself from the business, by having the right business classification this will reduce the risk of losing your personal assets (home, cars, savings) in the event of a lawsuit.
Insure yourself and your business, by having the right comprehensive liability insurance coverage like personal, professional, general, cyber or workers’ comp will save you thousands in paying a settlement or attorney’s fees.
Have an arbitration clause in your employment contracts, this will reduce the risk of an employee filing a frivolous lawsuit against you or your business.
Remember profit doesn’t come alone, loss is part of the formula for growth. Stay vigilant with your business risk and evaluate your risk at least once per year.